SEC partners EFCC, Police to End Ponzi Scheme

Securities and Exchange Commission (SEC) has reaffirmed its commitment to work with law enforcement agencies to crack down on ponzi scheme operators in line with the Investment and Securities Act 2025.

John Achile, SEC divisional head on legal and enforcement, spoke at the commission’s Journalists’ Academy 2025 in Lagos, themed ‘The ISA 2025 and The Future of Nigeria’s Capital Market: Innovation, Protection, and Growth’.

Speaking on ‘Combating Investments Fraud, Ponzi Schemes and Illegal Investments,’ Achile said the commission will intensify efforts to identify and prosecute promoters of ponzi schemes in line with the Investments and Securities Act (ISA) 2025.

He said the SEC will work with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force (NPF), and the office of the attorney general of the federation to crack down on ponzi scheme operators.

According to Achile, the commission will continue to freeze accounts and seal the offices of perpetrators, who usually use new investors’ money to pay existing ones and often provide fake or incomplete documents.

He noted that ponzi schemes often promise high returns with little risk and consistent returns during economic challenges, are not registered with regulators, and have unknown promoters.

The SEC legal head asked investors to enquire from regulators of the sector of business touted before investing, urging Nigerians to be cautious of “get-rich-quick” schemes.

“Ponzi scheme could be structured as investment in agricultural business or processing along the value chain, investment in Bitcoin or cryptocurrency or other digital currencies and investment in gold coins or precious stones,” he explained.

Achile added that ponzi schemes cause financial losses, undermine market confidence, and lead to socio-economic problems.

The commission, on September 28, warned Nigerians about artificial intelligence (AI)-driven scams targeting investors with promises of guaranteed profits and fake celebrity endorsements.

He stated that the Ponzi scheme undermines confidence in the financial markets, causes loss of confidence in the regulators and the government when failures occur, reduces deposits in commercial banks, diverts savings and causes huge-scale losses to investors.